consolidation, page-52

Jimbo - I never went negative on RES, just the market as a whole. Even the FED right now are saying there's more tough times ahead. 4cps by Mar/Apr 09 is still a possibility.

Here's a wild theory. Please comment if you like.

The market took a dive and became headline news for many weeks/months late last year casting shadows over the whole financial industry and spreading fear throughout the ranks of investors worldwide. The world was gripped with fear.

Over the past few weeks, the market has slowly moved forward, albeit minimally. It reminds me of the analogy of holding a ball under water. It takes a lot more effort to hold it down than it does to let its natural buoyancy take control.

Now the fear has began to subside somewhat and the market is regaining some lost ground. This is the nature of the stock market. It is naturally buoyant. If it wasn't then it would have ceased to exist a long, long time ago. The news has began to focus on other things and the market, having been left alone is bouncing.

Perhaps there was a reason behind this whole crash (eg. Rich cats pulling the pin knowing they can buy back in at ridiculous prices only to do it all again in a decade??? A conspiracy of immense proportions, but as many canny investors will tell you, there's more money to be made in a bear market.)

A wise professor of psychology once said, you become what you think about most, and whatever you focus on expands. This works equally as effective on individual consciousness as it does on the mass consciousness. We're in a state of recovery right now because people have either A, forgotten about the stock market for now, or B, have become bullish again.

How long this lasts is anyone's guess. It could all change in a heartbeat and we all know that. Perhaps Israel/Hamas will have a sweeping effect on the worlds economies as more countries get drawn into this growing conflagration.

I can't see how pumping more money into an already weak economy can have any lasting effects because all those many billions will have to be paid back by the taxpayer at some stage. Any how much longer can we go on unsustainably consuming the worlds natural resources? Okay, so 100 years might seem a long time, but the very nature of global economics right now is flawed but hey, let's make hey when the sun shines right.

In good conditions, RES is a no-brainer.